SPX closed just barely above the June high close, but slightly below the intraday high. It is back inside the blue channel and in the middle of the potential resistance zone. Breadth was strong today at over 70% positive. The futures closed only one point above the 9:30 open. This was essentially another doji day. This is really a very odd rally. It is all built on gap ups that don't really seem to have any fundamental reason. Will there be any resistance here or will we just keep gapping up to new all time highs? Beats me. I am watching the SPY hourly 50 SMA as a bull/bear pivot.
There seems to be a big split in market sentiment. There are quite a few bulls that believe we are headed to new highs and beyond. At the same time there seems to be a lot of bears that do not believe in this rally at all. So far the bears have not really attacked this move up. There has been a lot of selling into strength, but no selling into weakness. The only real down day we have had was the last trading day of June. That day was positive 15 minutes before the close. Have the bears been vanquished or are they just waiting to pounce? It is earnings season so the news flow could shake things up at any time.
Bob
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